Karnataka CM Siddaramaiah announces farm loan waiver up to Rs 50,000

The Chief Minister of Karnataka Siddaramaiah today announced farm loan waiver up to Rs 50,000 for short-term loans taken by the Karnataka farmers. However, the farm loan waiver would be applicable only to cooperative banks loans, Siddaramaiah said while. The reports also have it that Siddaramaiah would waive off loans of Rs 8167 crore of 22,000 farmers in Karnataka.

Siddaramaiah had hinted at farm loan waiver in May referring to the demands of the opposition parties to waive farm loan in Karnataka. “I am closely watching the developments. I will wait and watch and take a final call,” he had said. To which, a minister on the condition of anonymity said, “The state can waive all the loans, technically, but the financial burden is too much. Even in Uttar Pradesh and Madhya Pradesh, they are only looking to waive a part of the loans and not the full amount. Unless the Centre steps in to help with loan waiver, it is going to be very difficult to do a complete one.”